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CHITTAGONG UNIVERSITY OF ENGINEERING & TECHNOLOGY
Department of Computer Science & Engineering
Report No.: 4
Report on : FEASIBILITY ANALYSIS OF IFIC BANK Ltd. (Khatungonj branch, Chittagong)
Course Title: System Analysis and Design
Course No: CSE - 354
Submitted by: Shuvro Dutta (ID: 1404110)
Sourov Sarkar (ID: 1404105)
Shuva Kumar Nath (ID: 1404109)
Avilash Dutta (ID: 1404119)
Abu Bokor Suraj (ID: 1404112)
Submitted to: Shayla Sharmin
Lecturer, Department of CSE, CUET.
Dr. Kaushik Deb
Professor, Department. of CSE, CUET
Remarks
Introduction:
Feasibility analysis is an assessment of the practicality of a proposed project or system.
Feasibility analysis is used to present directions of activities which will improve the system
and achieve desired result. It is used to determine the viability of an idea. The objective of
such a study is to ensure a project is legally and technically feasible and economically
justifiable. It tells us whether a project is worth the investment.
Feasibility studies are useful to businesses in many ways. Some of the reasons are as follows:
● Not every project is doable. ● Not every project should be taken up. This will engage otherwise useful resources and block their use on other tasks. ● Not every project makes effective use of the resources of an organization.
In simple terms, a feasibility study involves taking a judgment call on whether a project is doable. The two criteria to judge feasibility are cost required and value to be delivered. A well-designed study should offer a historical background of the business or project, a description of the product or service, accounting statements, details of operations and management, marketing research and policies, financial data, legal requirements and tax obligations.Generally, such studies precede technical development and project implementation.
A feasibility study evaluates the project's potential for success; therefore, perceived objectivity is an important factor in the credibility of the study for potential investors and lending institutions.
The acronym TELOS refers to the five areas of feasibility - Technical, Economic, Legal, Operational and Scheduling.
Three Areas of Project Feasibility:
1. Technical Feasibility - assessment is centered on the technical resources available to the organization. It helps organizations asses if the technical resources meet capacity and whether the technical team is capable of converting the ideas into working systems. Technical feasibility also involves evaluation of the hardware and the software requirements of the proposed system. 2. Economic Feasibility - helps organizations assess the viability, cost, and benefits associated with projects before financial resources are allocated. It also serves as an independent project assessment, and enhances project credibility, as a result. It helps decision-makers determine the positive economic benefits to the organization that the proposed system will provide, and helps quantify them. This assessment typically involves a cost/ benefits analysis of the project. 3. Operational Feasibility - this involves undertaking a study to analyze and determine whether your business needs can be fulfilled by using the proposed solution. It also measures how well the proposed system solves problems and takes advantage of the
❖ Economic Feasibility: o Investment: ▪ Cost of software - 30,00,000k ▪ Cost of server -7,75,000 Tk ▪ Cost of Employee training -1,15,500 Tk
Total Investment =11,90,500 Tk
o Cost Per Year: ▪ Salary of software and database experts - 20,00,000tk ▪ Cost of Maintenance software - 8,50,000 Tk. ▪ Cost of Maintenance server -10,00,000 Tk. ▪ Others cost - 90,000 Tk
Total Cost =39,40,000 Tk
o Payback Period Calculation: ▪ Investment =11,90,500 Tk. ▪ Total Cost = 39,40,000 Tk. ▪ Total expected income = 47,00,000 Tk(peryear) ▪ Net benefit = Total income – Total Cost = 47,00,000 Tk – 39,40,000 Tk. = 7,60,000(per year) Payback period = Investment / Net benefit = 11,90,500/ 7,60, = 1.56 years (1 years 7 months)
➢ Proposal B:
❖ Technical Feasibility: o ATM machine required. - Available. o Internet connection for ATM booth. - Can be easily managed. o Software for ATM machine. - Available. o CC Camera required. - Available. o Business Deal with local mobile operator -Manageable ❖ Operational Feasibility: o Renting land for ATM booth. - Manageable. o Security guard. - Manageable. o Transportation of money to ATM booth. - Can be done. o Continuous Electricity supply -Can be done
❖ Economic Feasibility: o Investment: ▪ Cost of Space - 8,00,000 Tk ▪ Cost of ATM machine - 2,50,000 Tk ▪ Cost of software - 1,00,000 Tk ▪ Cost of CC Camera - 10,000 Tk. ▪ Cost of Making ATM card (500) - 1,00,000 Tk Total Investment = 12,60,000 Tk. o Cost Per Year: ▪ Power supply – 50,000 Tk ▪ Salary of security guards – 1,20,000 Tk. ▪ Transportation cost – 50,000 Tk. ▪ Maintenance cost – 1,00,000 Tk. Total yearly cost= 5600000tk o Payback Period Calculation: ▪ Investment = 12,60,000 Tk ▪ Total Cost = 3,20,000 Tk. (per year) ▪ Total expected income = 50,00,000 Tk. (per year) ▪ Net benefit = (Total income –Total Cost) =50,00,000 – 3,20, =46,80,000 Tk. (per year)
Payback period = Investment / Net benefit = 12,60,000 / 46,80, = 5.3~5.4 years.
Calculating Optimal Solution:
Proposals Technical Feasibility Operational Feasibility Economic Feasibility A Feasible Feasible Not Feasible B Feasible Feasible Feasible
From table we see that Proposal A is not Economically feasible because of High investment
cost and long payback period. It takes 5.3~5.4 years to regain the total investment.
Considering Initial investment and payback period, PROPOSAL B is ACCEPTED.
